Crossroads office building sells at near-record price per sf

The building at 4090 Clydesdale Parkway in Loveland fetched one of the highest prices to date for a building over 10,000 square feet in Northern Colorado.

An 11,978-square-foot office building in eastern Loveland sold for $4.05 million, representing a near-record price of $338.37 per sf.

SRI Investments/Stucco Rite Inc., a Colorado-based investment company, sold the multitenant, Class A building at 4090 Clydesdale Parkway to First American Exchange Co.

Jared Goodman

Jared Goodman

“The beautiful building has attracted quality tenants and is at the center of explosive growth in Northern Colorado,” said Jared Goodman of Cushman & Wakefield, who represented the seller in the transaction.

“Northern Colorado’s employment and population growth is and has performed ahead of the nation. The interest in this building along Crossroads Boulevard just east of Interstate 25 is a prime example of that growth and demand in quality product in Northern Colorado.”

“This transaction allows us to redeploy some capital to another development we are currently working on just east of this property on Crossroads Boulevard,” said Kurt Georgeades, CEO of SRI Investments.

The building, located in Crossroads Business Park, was completed in 2016 and was 100% occupied at the time of sale. Original tenants include Ewing-Leavitt Insurance, Bridgewater Homes and Keystone Financial, and there is additional income from a Verizon cell tower.

The buyer purchased the property as a partial 1031 exchange.

Cobey Wess

“This building is coupled with superior quality and stable tenants. It was important to the buyer to invest locally in Northern Colorado,” said Cobey Wess of SVN/Denver Commercial, who represented the buyer.

The property sold at 6.62% cap rate with varied tenant lease terms remaining. The price was one of the highest paid for an office building over 10,000 sf in Northern Colorado.

“This sale represents a classic case of how the quality of a building, tenants and location make a cap rate or return on investment not the only determining factor in today’s market” Georgeades commented.

Featured in CREJ’s April 1-14, 2020, issue

Jill Jamieson-Nichols has been an Editor with the Colorado Real Estate Journal for more than 15 years, providing coverage of office, industrial, hospitality and mixed-use development news in the Denver metro area, plus all property types in Northern Colorado, Boulder County and along the Highway 36 corridor. Prior to joining CREJ, Jill was Editor of…